President Obama has announced a deal has been reached to reduce the federal deficit and avoid default. The president made a statement in the White House briefing room. Obama stated the deal will “end the crisis Washington imposed on the rest of America.”
Its details haven’t been disclosed and some in Washington speak of a framework for a deal. It appears the deal would reduce $1 trillion in budget cuts over the next few months. A bi-partisan committee of Congress would consider further cuts to bring the total closer to $3 trillion. The committee’s recommendation would come before both chambers of Congress for an up or down vote.
Obama stated that “modest” adjustments would be made to federal programs, including Medicare. Obama stated the ultimate solution to the federal deficit must be balanced and ask the wealthiest Americans and corporations to pay more.
The president called the process messy and said it took far too long, impacting business and consumer confidence. The deal, according to Obama, would lift the cloud of debt and uncertainty that hangs over the economy. He again stated it wasn’t the deal he would have preferred and said the tough choices could have been made now.